Nautilus 2009 Annual Report Download - page 56

Table of Contents
shares for $5.3 million during the year ended December 31, 2008. The Company does not intend to repurchase any additional shares at this time.
2005 Long-Term Incentive Plan
In 2005, Nautilus shareholders approved the 2005 Long-Term Incentive Plan (the “2005 Plan”) to enhance the Company’s ability to attract and
retain highly qualified personnel and align the long-term interests of participants with those of the shareholders. The 2005 Plan, which is
administered by the Company’s Compensation Committee of the Board of Directors (“Compensation Committee”), authorizes the Company to
grant various types of stock-based awards including: stock options, stock appreciation rights, restricted stock, stock units and performance stock
grants. Stock options granted under the 2005 Plan shall not have an exercise price less than the fair market value of the Company’s common
shares on the date of the grant. The exercise price of an option or stock appreciation right may not be reduced without shareholder approval.
Stock options generally vest over four years of continuous service, commencing on the date of grant. Stock options granted after the adoption of
the 2005 Plan have a seven year contractual term. Stock options granted under the preceding plan expire after ten years.
Upon its adoption, there were approximately 4.0 million shares available for issuance under the 2005 Plan. The number of shares available for
issuance is increased by any shares of common stock which were previously reserved for issuance under the Company’s preceding stock option
plan, and were not subject to grant on June 6, 2005, or as to which the stock based compensation award is forfeited on or after June 6, 2005. The
number of shares available for issuance is reduced by (i) two shares for each share delivered in settlement of any stock appreciation rights, for
each share of restricted stock, and for each stock unit or performance unit award, and (ii) one share for each share delivered in settlement of a
stock option award. In no event shall more than 1.0 million aggregate shares of common stock subject to stock options, stock appreciation rights,
restricted stock or performance unit awards be granted to any one participant in any one year under the 2005 Plan. At December 31, 2009,
4.6 million shares remained available for future grant under the 2005 Plan.
Stock Options
A summary of the Company’s stock option activity is as follows:
52
(In thousands, except exercise price)
Total
Shares
Weighted
-
Average
Exercise
Price
Weighted
-
Average
Remaining
Contractual Life
(in years)
Aggregate
Intrinsic
Value
($000s)
Outstanding at January 1, 2008
2,804
$
13.54
Granted
1,116
4.15
Forfeited, cancelled or expired
(1,819
)
11.27
Exercised
(90
)
6.26
Outstanding at December 31, 2008
2,011
10.70
5.06
$
—
Vested and expected to vest at December 31, 2008
1,616
11.61
4.90
—
Outstanding at December 31, 2008
2,011
10.70
Granted
65
1.63
Forfeited, cancelled or expired
(662
)
10.24
Exercised
—
—
Outstanding at December 31, 2009
1,414
10.50
4.24
26
Vested and expected to vest at December 31, 2009.
1,266
11.18
4.10
16